Use the information in BE7.11 for Wood SA. Assume that the receivables are sold with recourse (guarantee). Prepare the journal entry for Wood to record the sale.

BE7.11

Wood SA factored €150,000 of accounts receivable with Engram Factors, without guarantee of credit loss. Engram assesses a 2% finance charge of the amount of accounts receivable and retains an amount equal to 6% of accounts receivable for possible adjustments. Prepare the journal entry for Wood SA and Engram Factors to record the factoring of the accounts receivable to Engram.